5 Steps to Lockdown Budgeting
These days our wallets can all expect to feel the pinch. The state of the local and worldwide economy has us worried about whether we are going to be able to cope financially over the coming months. These are trying times and the best thing we can do is to attempt to reduce our costs as much as possible until things slowly start to get back to normal.
We have compiled a Budget Spreadsheet to help you to manage your finances during the current climate. Download and Fill in the Budget Spreadsheet as you go through each of the steps below.
Step 1: Identify Fixed Costs
Everyone should know what their debit orders are every month. Fixed costs include rent, taxes, leases, school fees, and cell phone bills. Meeting these fixed obligations is extremely important. Plug the values of your monthly fixed costs into the spreadsheet.
Step 2: Contact Fixed Cost Entities
Contact all of the necessary businesses, individuals and institutions before your next debit orders go off and ask them if they would be willing to accept a reduced amount over the next 2-3 months, or even a postponement of the payments until lockdown is over.
If any of your fixed costs are eligible for reduced terms or postponement then add the new amount into the spreadsheet.
Step 3: Variable Costs
Work out all of your normal variable costs and add them into the spreadsheet. These include weekly coffee shop visits, hair appointments, and online shopping.
Step 4: Sort the Needs and the Wants
Now you must decide which variable costs are the most important in the next few months, and which things you need rather than simply want. In lockdown we are fortunate in some ways that many of our usual recreational activities such as eating out and shopping are no longer options so we can expect to save money in those regards.
Edit the spreadsheet according to what variable costs will likely be applicable in the coming months.
Step 5: Your Estimated Budget:
Once you’ve filled out the Budget Spreadsheet you will see your estimated monthly budget over a 5 month period. This is to ensure that you do not overspend and that in a worst-case scenario you have still have cash available to meet your monthly obligations and some left over to save.
Managing your money during lockdown and after is crucial and we hope that this helps you to do just that.
Stay safe.
